In a major shift that could impact millions of Americans focused on health and fitness, your gym membership could soon be HSA-eligible under a proposed GOP tax bill. This potential change is part of a broader Republican-led effort to reimagine health-related spending and tax relief in the United States.
The idea is to make it easier for Americans to invest in their health—not just through traditional medical expenses but through preventive and wellness-oriented choices like fitness club memberships, exercise classes, and even sports activities.
In this article, we’ll break down everything you need to know about this proposal, why it matters, who it could benefit, and what critics and supporters are saying.
Before diving into the new proposal, let’s understand what an HSA (Health Savings Account) actually is.
An HSA is a special savings account available to people with high-deductible health plans (HDHPs). The money in this account can be used tax-free to pay for qualified medical expenses, such as:
Currently, expenses like gym memberships and wellness programs are not eligible—but that may be about to change.
The new GOP tax bill, formally titled the “Personal Health Investment Today (PHIT) Act”, proposes a significant change: allow Americans to use HSA and FSA (Flexible Spending Account) funds to pay for exercise and fitness-related expenses.
This would include:
If passed, the bill would allow up to $1,000 per year for individuals and $2,000 per year for families to be used from HSAs or FSAs toward these expenses.
Supporters of the bill argue that this isn’t just about tax benefits—it’s about preventive care.
Here’s the logic:
According to Rep. Jason Smith (R-MO), one of the bill’s backers, “Allowing people to use tax-advantaged accounts to maintain a healthy lifestyle is a step toward reducing our nation’s long-term healthcare burden.”
This view is shared by many in the healthcare and fitness industries, who have long argued that wellness is health care.
If passed, this change could positively affect a wide range of people.
Many families already struggle with the cost of healthcare. Adding gym memberships as an HSA-eligible expense would offer them an affordable way to stay fit.
Those managing obesity, high blood pressure, or diabetes could use fitness programs as part of their treatment—without extra out-of-pocket spending.
Gyms, personal trainers, and fitness centers would likely see a surge in memberships and engagement as costs become tax-deductible.
The bill defines “qualified sports and fitness expenses” fairly broadly. Here’s a simplified list of what could be covered under your HSA if the bill becomes law:
However, not everything qualifies. Expenses like dietary supplements, workout clothing, or fitness trackers (like Fitbits or smartwatches) would likely still be excluded unless specifically added in future amendments.
Not everyone is on board with the bill. Some critics argue that the proposal:
Since HSA access is generally more common among people with higher incomes, the tax break may not equally benefit low-income Americans.
Some skeptics believe this opens the door for more lifestyle expenses to be treated as healthcare, which could undermine the original intent of HSAs.
Allowing gym memberships to become HSA-eligible may reduce the amount of taxable income reported, leading to a drop in federal tax revenue.
Despite these concerns, the momentum behind the bill appears to be building.
Fitness and wellness industry leaders are strongly in favor of the bill.
Liz Clark, CEO of the International Health, Racquet & Sportsclub Association (IHRSA), said:
“The PHIT Act represents a cultural shift in how we define health spending. This is about empowering individuals to take charge of their own health through fitness.”
Gyms and boutique studios may also begin offering PHIT-eligible packages if the bill passes, marketing memberships as part of a healthy lifestyle supported by tax savings.
If you’re someone who:
Then this bill could help reduce your actual cost of staying healthy.
For example, if you spend $600/year on a gym membership, and you’re in the 24% tax bracket, you’d effectively save $144 per year by paying with pre-tax dollars. That adds up over time.
The PHIT Act has been introduced before but failed to gain enough support to become law. This time, however, with a strong GOP push for healthcare reform and tax relief, it’s gaining more traction.
What to Watch For:
If passed, the changes could go into effect starting next tax year.
While we wait for the final vote, here’s what you can do:
The idea of making your gym membership HSA-eligible reflects a broader trend: viewing health as more than just treatment—it’s prevention. Encouraging Americans to move more, eat better, and live healthier lives isn’t just smart policy—it’s smart economics.
Whether or not this bill passes in its current form, it’s clear that the conversation about healthcare is evolving. And perhaps, with a little help from Washington, hitting the gym might finally be a little easier on your wallet.
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